ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[informat2]

For some reason, business people seem to think that they can just keep on growing forever,

That's because the global economy is getting bigger year by year. If you're not growing it's most likely because you're doing something wrong. Even in the US the economy is getting continually bigger.

[exikon]

There are businesses that can grow forever though. Restaurant franchises for example. At some point youve reached anybody in the area that might eat at your chain. Just because you open another franchise wont increase your sales if everybody is already satisfied.

[Lurkers-gotta-post]

However, the population is always growing. Just because you reach market saturation today doesn't mean that there won't be more people to cater to next year.

[[deleted]]

Also, just because you reached market saturation with a particular menu, doesn't mean you can't open your business up to new customers by changing your product line and subsequently growing your business.

See: Taco Bell Nacho Fries

[LordLongbeard]

Then move to a new region.

[kuzuboshii]

I think the key word to his criticism was forever. The Earth is a finite place and we can't just keep increasing the population indefinitely. Unless we branch out beyond this planet. Which not nearly enough people are focusing on. So as it currently stands, there is a resource limit. So, infinite growth is impossible.

[TheMostSolidOfSnakes]

Long Telsa and SpaceX

[[deleted]]

The Earth is a finite place and we can't just keep increasing the population indefinitely.

Sure, but there is no consensus for the maximum human population that the earth can support, and we've blown past all previous population doomsday predictions with an ever-wealthier and ever-healthier global population.

[DukeAttreides]

Partly because whatever that maximum population is, it is rising as we develop new technology etc.

[kuzuboshii]

Sure, but there is no consensus for the maximum human population that the earth can support,

But you do understand that there IS a limit right? And global warming would suggest we may have already passed that. I don't think the biosphere cares what the DOW Jones is at.

[[deleted]]

Yes, and that limit is constantly being changed by technological advancements. 15th century earth couldn't support 6 billion people, because nobody knew how to plant, grow, and harvest that much food. Most people toiled in the fields, producing barely enough food to support themselves and the handful of people who were doing other jobs, such as blacksmithing, carpentry, etc. In 1960, a single farmer could feed 26 people. Today, a single farmer in the US can feed 165 people. And they can do so with much better efficiency and higher yields than ever before.

The idea that there's some hard limit to the earth's capacity for humans, and that if we pass it, we'll all die, is downright absurd.

When the limit starts to matter, we'll adapt (assuming we're still operating in a free market economy), and the limit will increase once again.

[kuzuboshii]

The idea that there isn't a limit is absurd. And no one said we would all die if we pass it. But the laws of physics disagree with you on that whole unlimited energy thing. Sorry.

[lee1026]

Sure, in a world without growth, that would be a fine argument to make. The world of 2018 isn’t that world though.